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Article

24 Oct 2024

Auteur:
Yesul Kyung, Labor today

S. Korea: Country's largest beauty store allegedly evading obligations related to employment, industrial accident insurance; gender pay gap concerns also raised

“Oliveyoung uses fake 3.3 workers through CJ Logistics, echoing Coupang's scandal”, 24 October 2024

… Recent investigations have confirmed that Oliveyoung's logistics facilities have employed casual workers disguised as sole proprietors to evade obligations related to employment and industrial accident insurance. This practice has emerged within a convoluted subcontracting structure involving Oliveyoung, CJ Logistics, subcontracted logistics companies, and labour supply firms. Casual workers are tasked with various duties, including picking, packing, and shipping goods ordered by both physical Oliveyoung stores and online customers, all while being registered under small labour supply firms.

…Concerns have also been raised regarding gender pay gap, with male workers earning 139,400 won and female workers receiving 136,400 won for the same hours, highlighting potential gender discrimination issues.

…A representative from Oliveyoung stated, “CJ Logistics operates the facility, and Oliveyoung acts as the client. It is difficult for us to fully represent CJ Logistics’ position as we do not know the specifics of the contractual relationships involved.”

In response, CJ Logistics remarked, “The company compensates partner firms for costs that include the four major insurances and severance pay. However, we face limitations in understanding individual contractual relationships due to concerns about management interference.” They added, “We are currently investigating the facts and will take appropriate action regarding any problematic aspects.”